JAIIB Examination

Indian Economy & Indian

Financial System
Marathon
Part-1
IE&IFS – Marathon – JAIIB 2025
Q. 1
The financial sector reforms in the early nineties brought a transformation in the
structure, efficiency, stability and integration of financial markets. Which of the
following is not a characteristic of these reforms?
(a) Controls over the pricing of financial assets
(b) Increase in the number of instruments
(c) Improvement in the informational flows
(d) Relaxation of quantitative restrictions
Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 2
Consider the following statements about Call Money, Notice Money and Term Money:
1. Call money: lending period is of 1 day
2. Notice Money: lending period is between 2 to 7 days
3. Term Money: lending period is between 7 days to 1 year
Which of the above statement/s is/are incorrect?
(a) 1 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3 Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 3
The borrowing under Inter-Corporate Deposit (ICD) is restricted to ___ of the Net Owned
Funds and the minimum tenor of borrowing is for ___ days.
(a) 10%, 90 days
(b) 50%, 30 days
(c) 100%, 14 days
(d) 150%, 7 days
Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 4
Which of the following is not a characteristic of the Forex Market?
(a) Liquidity
(b) Availability
(c) Mostly Exchange Traded
(d) Promptness

Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 5
Which among the following is not a reason for the interconnectedness of financial
markets?
(a) Capital has become more mobile across national boundaries
(b) Technological developments in electronic payment and communication systems
(c) Changes in the operating framework of monetary policy
(d) Divergence of prudential regulations

Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 6
Which of the following is incorrect about Merchant Banks and Commercial Banks?
(a) Merchant Bankers mainly undertake funding business, whereas Commercial Banks mainly undertake
fee-based business
(b) Merchant Banks are management oriented, whereas Commercial Banks are assets oriented
(c) Merchant Banks are regulated by SEBI, whereas Commercial Banks are governed by RBI regulations
(d) Activities of Merchant Banks are project counseling, capital structuring, amalgamations and takeovers,
whereas Commercial Banks are mainly financiers
Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 7
Pick the odd one out with respect to swaps in the Derivatives Market:
(a) Interest rate swaps
(b) Currency swaps
(c) Credit default swaps
(d) Debit default swaps
Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 8
Which among the following statement is incorrect regarding Forfaiting?
(a) Forfaiting saves administration cost
(b) Forfaiting provides 50% financing without recourse
(c) Forfaiting also helps to realise price transfer
(d) Forfaiting improves cash flow of the exporter
Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 9
Which of the following statements is incorrect regarding Venture Capital Financing?
(a) The autonomy and control of the founder is lost, as the investor becomes a part
owner.
(b) The process is lengthy and complex, as it involves a high degree of risk
(c) The profitability of the investment is guaranteed.
(d) The amount of equity finance that can be provided is large.
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 10
Which of the following options regarding Lease Financing is incorrect?
(a)Lessor gets assured rental income during the period of lease
(b)Rate of return in the lease rental is higher than the interest payable on financing the
asset.
(c)Lease rental is deductible from the taxable income of the lessee
(d)Lessee compulsorily receives the right of ownership of the asset after the lease period
Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 11
Which among the following is not a benefit of Credit Rating to the Investor?
(a) Assessment of risk
(b) Guaranteed investment success
(c) Information at low cost
(d) Advantages of continuous monitoring
Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 12
There are two institutions that play the role of supervising or maintaining
standards in the mutual fund's landscape - SEBI and AMFI. What does AMFI
stand for?
(a) Association of Mutual Funds of India
(b) Association for Mutual Fund Investments
(c) Advisory for Mutual Funds in India
(d) None of these
Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 13
Which of the following is included in the Motor Insurance Policy?
(a) Accidents beyond Geographical limits
(b) Electrical/Mechanical Breakdowns
(c) Damage due to theft or riot
(d) Not having a valid Driving License
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 14
In the vesting stage of a pension product, which one of the following is among the
five core functions?
1. Reliable Collection of Contributions
2. Timely Benefit Payments
3. Effective Communication Network
(a) 1 and 2 only
(b) 1, 2 and 3
(c) 1 and 3 only
(d) 2 and 3 only
Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 15
Which among the following is/are the characteristics of infrastructure?
1. Building of infrastructure requires large investment.
2. Their gestation period is quite long.
3. They have significant economies of scale
4. They create externalities.
(Select the most appropriate answer from the options given below)
A. 1, 2 and 3 only
B. 1, 3 and 4 only
C. 2, 3 and 4 only
D. 1, 2, 3 and 4 Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 16
Which of the following is not a type of Infrastructure Investment Trust (InvITs)?
(a) Power generation
(b) Irrigation networks
(c) Residential Real Estate
(d) Optical fibre networks

Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 17
Under which section of the Income Tax Act is the Atal Pension Yojana eligible for
deductions?
(a) Section 80C
(b) Section 80CC
(c) Section 80CCD
(d) Section 80D
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 18
Protectionism does not take which among the following form?
A. Tariffs
B. Import quotas
C. Non-tariff barriers
D. Excise Tax
Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 19
Which of the following is not a duty of the hirer?
(a) The hirer has the right to use the property as their own but must care for it diligently.
(b) It is the duty of the hirer to ensure timely installment payments
(c) It is the duty of the hirer to ensure that the goods are true to the description
(d) The hirer must be present upon goods delivery.
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 20
Which of the following does not represent a viable exit strategy for a provider of
venture capital finance from an investee company?
(a) Sale of Enterprise to another Company
(b) Buy back of Shares by the Promoters
(c) Liquidation of the Investor Company
(d) Self-liquidating Process

Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 21
Which of the following statement(s) about Merchant Banks is incorrect?
(a)Merchant Bank can directly assume the role of the Trustee
(b)The rate of interest will increase as a result of reduced money supply and In terms of
SEBI guidelines, all debenture issues (public rights) of the companies with the maturity
period exceeding 18 months are required to have 'Debenture Trustee'
(c)A Trust established as a subsidiary of the Merchant Bank can become a Debenture
Trustee
(d)Merchant Bank cannot directly assume the role of the Trustee

Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 22
The Foreign Direct Investment (FDI) limit allowed in India in Telecommunication
Services sector is ___________. (Select the most appropriate answer from the options
given below)
A. 74%
B. 51%
C. 100%
D. 20% Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 23
To whom does the Foreign Exchange Management Act (FEMA) apply?
(a) Only individuals residing in India
(b) All Indian residents, but not their foreign branches or offices
(c) All Indian residents, including their foreign branches or offices
(d) International corporations operating inside India
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 24
Which among the following statement(s) is/are correct with respect to Economic
Growth and Development?
1. Economic growth means an increase in real national income/national output
2. Economic development is multi-dimensional in nature as it focuses on both income and
improvement of living standards of the people
3. Economic Growth is the precursor and prerequisite for economic development
(Select the most appropriate answer from the options given below)
1 and 2 only
1 and 3 only
2 and 3 only
Answer: Option D
1, 2 and 3
IE&IFS – Marathon – JAIIB 2025
Q. 25
To be eligible as tri-party agents, applicants must possess a minimum paid-up equity
share capital of Rs. _____ crores and a track record of at least ____ years in the financial
sector, either in India or abroad, with a preference for experience in custody, clearing,
or settlement services.
(a) 100 crores, 3 years
(b) Rs. 50 crores, 4 years
(c) Rs. 25 crores, 5 years
(d) Rs. 10 crores, 3 years

Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 26
Which of the following is incorrect regarding Derivatives?
(a) Derivatives value changes in response to the change in the value of the underlying.
(b) Derivatives require little to no initial net investment.
(c) Derivatives are settled at a present date.
(d) Derivatives in India are regulated by SEBI along with other regulators like RBI
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 27
Which of the following options regarding the recommendations made by the
Narasimham Committee in 1991 is incorrect?
(a) A phased reduction in Statutory Liquidity Ratio.
(b) Phased achievement of 8% Capital Adequacy Ratio.
(c) Partial disclosure of accounts of banks and financial institutions
(d) Deregulation of interest rates.
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 28
Section 12 of the Banking Regulation Act, 1949 states that the subscribed capital of a
banking company cannot be less than ____ of the authorised capital, and the paid-up
capital cannot be less than ____ of the subscribed capital.
(a) 50%, 50%
(b) 60%, 40%
(c) 75%, 25%
(d) 80%, 20%
Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 29
Which of the following is correct regarding the gaps in the Post-Independence Financial
Systems?
(a) Commercial banks selectively provided long-term finance.
(b) Underwriting firms embraced investments in risky ventures.
(c) Managing agency houses sponsored issue of bonds and other securities in risky
ventures
(d) Investors were not interested in investing in the capital market.
Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 30
Which of the following regarding regulators of Non-Banking Financial
Companies (NBFC) is incorrect?
(a) Venture Capital Funds/Merchant Banking companies/Stock Broking companies, are
regulated by the RBI
(b) Chit companies are regulated by the respective State Governments
(c) Housing finance companies are regulated by the National Housing Bank (NHB)
(d) Stock Exchange or a Mutual Benefit Company are regulated by SEBI.
Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 31
The insurance industry was first opened to private players and Foreign Direct
Investment (FDI) in the year _____, when the Government permitted FDI to the extent
of _____ in Indian insurance companies.
(a) 1991, 21%
(b) 1999, 25%
(c) 2000, 26%
(d) 2001, 29%
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 32
Quinary Sector is a sub-sector of ________. (Select the most appropriate answer from the
options given below)
A. Primary Sector
B. Tertiary Sector
C. Secondary Sector
D. Quaternary Sector
Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 33
Which among the following statement(s) is/are true with respect to Sunrise Sector? (Select
the most appropriate answer from the options given below)
A. A sunrise sector is one that is still in its infancy, but has the potential for significant
growth.
B. The sector is often characterised by high degree of innovation
C. AI is part of the Sunrise Sector.
D. All of the above
Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 34
Who among the following was the Chairperson of NITI Aayog when it was established?
A. Chief Secretary
B. Prime Minister
C. Finance Minister
D. Finance Secretary

Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 35
Which among the following is known as the ‘Father of Pink Revolution’?
A. Dr. M.S. Swaminathan
B. Mr. Verghese Kurien
C. Dr. Arun Krishnan
D. Mr. Durgesh Patel

Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 36
Which among the following is not a category of Microfinance Institutions?
a) Not for profit MFIS
b) For profit MFIs (NBFC-MFIs)
c) Non-governmental MFIs
d) Mutual benefit MFIS

Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 37
Which of the following is not a function NABARD?
a) It provides refinance support to State Cooperative Banks (StCBs) and Regional Rural
Banks (RRBs)
b) It implements various promotional and development programmes for the growth of
agriculture and rural development activities
c) It conducts statutory inspection of the State Cooperative Banks (SICB), District Central
Cooperative Banks (DCCBs) and RRBs
d) NABARD can conduct statutory inspection of the Scheduled Commercial Banks (SCBs)

Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 38
Which act included special provisions related to banking companies due to their
inadequacy in the previous law?
a) The Reserve Bank of India Act, 1934
b) The Banking Companies Regulation Act,1947
c) The Banking Regulation Act, 1949
d) The Companies Act, 1956

Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 39
Which of the following options is incorrect regarding Central Bank's Digital Currency
(CBDC)?
a) It is expected to help cross-border remittances.
b) It is expected to decrease the transaction cost for businesses and the government.
c) It will decrease people's access to physical currencies.
d) It can benefit customers convenience of transactions with anonymity.

Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 40
Who is the originator of the definition of Economics as the study of wealth production
and consumption, often referred to as the "wealth definition"?
a) Adam Smith
b) Alfred Marshall
c) Lionel Robbins
d) John Maynard Keynes
Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 41
What is the term for the prevailing interest rate determined by the balance between
borrowing demand and the supply of loanable funds?
a) Prime Rate
b) Pure Interest
c) Marginal Rate
d) Real Interest Rate

Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 42
Companies established as per the Companies Act 2013 are mandated to spend 2%
percentage of their net profits of ______years for activities related to Corporate Social
Responsibility (CSR).
A. 1 year
B. 2 years
C. 3 years
D. 4 years Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 43
Which among the following options is not an instrument of Fiscal Policy?
a) Government Purchases
b) Interest Rates
c) Income Tax
d) Government transfer payments
Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 44
How is GDP at market prices (MP) calculated from GDP at factor cost (FC)?
a) Adding Net Indirect Taxes
b) Adding Depreciation
c) Adding Net Factor Income from Abroad
d) Adding Product Taxes

Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 45
Which among the following is one of the pillars of the Foreign Trade Policy 2023?
1. Incentive to Remission
2. Export promotion through collaboration
3. Ease of doing business
4. E-Commerce Developing Districts as Export Hubs
(Select the most appropriate answer from the options given below)
A. 1, 2 and 3 only
B. 2, 3 and 4 only
C. 1, 3 and 4 only
D. 1, 2, 3 and 4
Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 46
Which among the following is the aim of AMRUT being implemented by the
Government of India? (Select the most appropriate answer from the options given
below)
A. To help MSMEs upgrade their technology.
B. To transform urban living conditions through infrastructure upgradation
C. To encourage maintenance of cleanliness in India
D. None of the above Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 47
Which among the following option is not a characteristic of recession?
a) Decline in demand
b) Unemployment rises
c) Increasing inflation
d) Price cuts by industries

Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 48
Which of the following statement regarding shifts in the money demand or liquidity
preference curve are true?
a) An increase in nominal income leads to a downward shift in the money demand
curve.
b) The expectations about the changes in bond prices in the future, does not
necessarily imply change in rate of interest in future.
c) An upward shift in the liquidity preference curve results in a lower rate of interest.
d) An upward shift in the liquidity preference curve results in a higher rate of interest.
Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 49
What does GDP deflator measure?
a) Inflation
b) Unemployment
c) National Income
d) Purchasing Power
Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 50
Which of the following luxury goods become more valuable as their price rises?
a) Giffen Goods
b) Veblen Goods
c) Normal Goods
d) Inferior Goods
Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 51
Which among the following is an example of Soft Infrastructure? (Select the most
appropriate answer from the options given below)
A. Roads
B. Ports
C. Airports
D. Healthcare
Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 52
When a household's income rises, and they purchase more of a product even if its price
increases, this situation is an exception to?
(a) The law of supply
(b) The law of demand
(c) The law of equi-marginal utility.
(d) The law of diminishing marginal utility.
Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 53
Which among the following statement regarding Over-the-Counter (OTC) Markets is
incorrect?
(a) The OTC derivative contracts are not standardised
(b) The OTC contracts can be customised
(c) OTC markets have a higher level of regulation than exchange-traded markets.
(d) Forward foreign exchange contract is an example of OTC derivative
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 54
According to Government classification, which of the following options is not classified
under infrastructure?
(a) Electricity generation
(b) Signalling system
(c) Corporate governance
(d) Pipelines for slurry
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 55
Regulatory structure for Non-Banking Financial Company (NBFCs) shall comprise of four
layers, based on their size, activity, and perceived riskiness. Which among the following
is not a layer in the regulatory structure for NBFCs?
(a) NBFC-Bottom Layer (NBFC-BL)
(b) NBFC-Middle Layer (NBFC-ML)
(c) NBFC-Upper Layer (NBFC-UL)
(d) NBFC-Top Layer (NBFC-TL)
Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 56
What term is used to describe the liquidity provisions by the Reserve Bank of India (RBI)
aimed at achieving sector-specific objectives while being linked to the policy repo rate?
(a) Open Market Operations
(b) Refinance Facilities
(c) Liquidity Adjustment Facility
(d) Standing Deposit Facility
Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 57
Which type of banking are Urban Cooperative Banks typically involved with?
(a) Retail Banking
(b) Investment Banking
(c) Rural Banking
(d) Microfinance Banking

Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 58
Which of the following is incorrect regarding liberalisation?
(a) Imports delicensed
(b) License Raj abolished
(c) Exchange rate pegged
(d) Disinvestment of Public Enterprises
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 59
Commitment fees is payable to the forfaiting agency ranges betweem ____% and
____%.
(a) 0.1,1
(b) 0.25, 1
(c) 0.5, 1.5%
(d) 0.75, 1.5%
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 60
Long term repo operation launched by RBI are linked to?
(a) Policy repo rate
(b) Market rate
(c) Reserve rate
(d) Standing deposit facility rate
Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 61
Which among the following is/are the characteristic(s) of Indian Economy?
1. Low per capita real income
2. Rapid population growth
3. Excessive reliance on the secondary sector
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1, 2 and 3
(d) 1 and 3 only
Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 62
Who among the following is considered the Father of White Revolution?
(a) Nirpakh Tutej
(b) M.S. Swaminathan
(c) Verghese Kurien
(d) Arvind Subramanian

Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 63
If the Gross Domestic Product (GDP) of a country is 10000 crore and Depreciation is 400
crore, NFIA is – 600 crores, what will be the Net Domestic Product (NDP)?
(a) 9600 crore
(b) 10400 crore
(c) 9000 crore
(d) 9800 crore
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 64
Which among the following is/are example(s) of soft infrastructure?
1. Law enforcement agencies.
2. Pipelines.
3. Financial infrastructure.
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 65
Which among the following Sustainable Development Goal (SDG) is related to Climate
Action?
(a) SDG 2
(b) SDG 3
(c) SDG 10
(d) SDG 13

Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 66
. India is a member of which among the following agencies of the World Bank Group?
1. International Bank for Reconstruction and Development (IBRD)
2. International Development Association (IDA)
3. International Finance Corporation (IFC)
4. Multilateral Investment Guarantee Agency (MIGA)
5. International Centre for Settlement of Investment Disputes (ICSID)
(a) 1, 2 and 3 only
(b) 1, 2, 3 and 4 only
(c) 3, 4 and 5 only
(d) 1, 2, 3, 4 and 5 Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 67
Which among the following has been entrusted the task of coordinating the SDGs in
India? (Select the most appropriate answer from the options given below)
A. Ministry of Environment, Forests and Climate Change
B. Ministry of Finance
C. Environment Protection Agency
D. NITI Aayog
Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 68
Which among the following statement is incorrect with respect to The Principle of
Utmost Good Faith (Principle of Uberrimae fidei) related to Insurance Products?
(a) It is a positive duty voluntarily to disclose, accurately and fully, all facts material to the
risk being proposed
(b) Non-disclosure of any material fact which is unintentional may not lead to contract
being declared voidable.
(c) Intentional Non-disclosure of information is considered fraud
(d) Non-disclosure of any material fact which is unintentional may lead to contract being
declared voidable.

Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 69
SEBI regulations require that ____________ of the directors of the Asset Management
Companies must be independent.
(a) 30%
(b) 50%
(c) 60%
(d) 80%

Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 70
Credit Rating is not provided for which among the following?
(a) Financial instrument
(b) Individuals
(c) Business entity
(d) Economies

Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 71
In a lease contract which among the following remains the owner of the asset?
(a) Lessee
(b) Lessor
(c) Purchaser
(d) Vendor

Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 72
Which among the following Committee recommended the creation of venture capital in
India in 1972?
(a)Bhatt Committee
(b)Nachiket Mor Committee
(c)RN Malhotra Committee
(d)P.J. Nayak Committee

Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 73
Which among the following statement is incorrect with respect to factoring?
(a) The factor may or may not accept the incumbent credit risk.
(b) Factoring enables companies to sell their outstanding book debts for cash.
(c) Factoring is a service that is concerned with the financing and collection of account
receivables, in domestic transactions only
(d) Under factoring arrangement, as soon as the invoice is submitted to the factor, the
factor will pay certain per cent of invoice to the seller.
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 74
Banking belongs to which among the following sectors? (Select the most appropriate
answer from the options given below)
A. Primary Sector
B. Secondary Sector
C. Tertiary Sector
D. Quinary Sector
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 75
Which among the following is the type of FDI which is an investment in which a
multinational corporation buys stock in an established firm in the host country? (Select
the most appropriate answer from the options given below)
(a) Brownfield FDI
(b) Greenfield FDI
(c) Whitefield FDI
(d) Joint Venture
Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 76
In a business cycle, during the peak phase, the economy experiences high levels of
production and employment. However, this phase is often followed by certain economic
indicators that signal an impending shift to the contraction phase. Which of the
following sets of indicators is most likely to signal the end of the peak phase and the
beginning of a contraction phase in a business cycle?
(a)Decreasing interest rates and increasing consumer confidence.
(b)Increasing inventory levels and decreasing corporate profits.
(c)Rising wage levels and increased capital investment.
(d)Decreased unemployment and high industrial output.
Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 77
In a forfaiting transaction, a common financing technique used in international trade, analyze the following complex
scenario and determine the correct course of action: A manufacturer in India sells heavy machinery to a buyer in
Brazil. The total contract value is USD 5 million, payable over 5 years in equal annual installments. Due to the risk of
default and to manage liquidity, the manufacturer decides to use forfaiting. In this arrangement, a forfaiting house
agrees to buy the receivables from the manufacturer at a discount rate of 7% per annum. However, the Brazilian
buyer insists on a grace period of 1 year before the first payment. Considering the risks and discount rate, what
should be the manufacturer's approach to optimize its financial position in the forfaiting transaction?
(a) Accept the grace period, increase the sale price to cover the additional discounting cost.
(b) Reject the grace period, maintain the original sale price, and forfait the receivables without changes.
(c) Accept the grace period, but renegotiate the discount rate with the forfaiting house.
(d) Forgo forfaiting and seek alternative f inancing options due to the grace period's complexity.

Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 78
The startup has successfully developed a prototype of its innovative product and conducted initial market
testing, which yielded positive responses. The founders have invested their own funds and received some
seed funding from angel investors. Now, the company requires substantial capital to commence full scale
production and launch its product in the market. The company's business model is scalable, but it has not
yet generated revenue. Given these circumstances, at which stage of venture capital financing is the
company currently?
(a) Seed Stage
(b) Early Stage
(c) Expansion Stage
(d) Late Stage

Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 79
As per the Prudential Limits of outstanding borrowing transactions in Call, Notice and
Term Money Markets, Payment Banks can borrow __________ of capital funds on a
daily average basis in a reporting fortnight.
(a) 100%
(b) 125%
(c) 150%
(d) 200%

Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 80
Which among the following entities under the Pension Fund Regulatory and
Development Authority (PFRDA) issues the Permanent Retirement Account Number
(PRAN)?
(a) Pension Fund Managers (PFMs)
(b) Central Record Keeping Agency (CRA)
(c) Point of Presence Agencies (PoPs)
(d) Trustee Bank

Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 81
Which among the following was the expert committee on Revised Regulatory
Framework for Urban Co-operative Banks (UCBs) whose recommendations were
accepted in 2022?
(a) N.S Vishwanathan Committee
(b) R.N. Malhotra Committee
(c) P.J. Nayak Committee
(d) Nachiket More Committee
Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 82
Which among the following statement is incorrect with respect to Cash Reserve Ratio (CRR) and Statutory
Liquidity Ratio (SLR)?
(a) Cash Reserve Ratio indicates the quantum of cash that the banks are required to keep with themselves
(b) Reserve Bank does not pay any interest on the CRR balances maintained by Scheduled Commercial
Banks.
(c) Statutory Liquidity Ratio (SLR) is the proportion of net demand and time liabilities that banks must
maintain in high quality liquid assets, such as government securities, cash and gold.
(d) In terms of Section 42 (1) of the Reserve Bank of India Act, 1934, RBI can prescribe the CRR, for
Scheduled Commercial Banks (SCBs), without any floor or ceiling rate.

Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 83
The Life Insurance Corporation of India (LIC) was formed in September, 1956 with a
capital contribution of ___________ from the Government of India.
(a) Rs 1 crores
(b) Rs 2 crores
(c) Rs 3 crores
(d) Rs 5 crores

Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 84
In terms of Section 45-IA of the RBI Act, a non-banking financial company can
commence or carry on the business of non-banking financial institution subject
to having net owned funds of minimum of _______________.
a) Rs 1 crores
b) Rs 2 crores
c) Rs 5 crores
d) Rs 10 crores

Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 85
Which among the following type of Microfinance Institution (MFIs) are registered under
the Companies Act and regulated by the RBI?
a) Not for profit MFIs
b) Mutual benefit MFIs
c) For profit MFIs (NBFC-MFIs)
d) None of the above
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 86
Which among the following is the purpose of the Line of Credit facility provided by
the Export Import Bank of India (Exim Bank)?
a) To help an overseas buyer to can open an LC in favour of the Indian exporter and
import goods and services from India, on deferred payment terms.
b) To provide 360-degree support to export-oriented units, by catering to long- term loan
requirements
c) To enable Indian exporters to enter new geographies
d) All of the above

Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 87
As per the SIDBI Loan for Purchase of Equipment for Enterprises Development (SPEED),
MSMEs can borrow upto ___________ of the machinery cost subject to maximum of Rs.
2 crores for existing customers of SIDBI.
a) 20%
b) 50%
c) 100%
d) 120%

Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 88
Which among the following initiatives has been launched by SIDBI to improve
accessibility of credit and handholding services to MSMEs? (Select the most appropriate
answer from the options given below)
(a) Udyami Mitra Portal
(b) MSME Sambandh
(c) Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
(d) A Scheme for Promotion of Innovation, Rural Industries & Entrepreneurship (ASPIRE)
Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 89
Which among the following statement is incorrect with respect to the Banking
Regulation Act 1949?
a) According to Section 24, every bank shall maintain a liquid reserve in cash, gold or
unencumbered approved securities
b) The Act determines the Statutory Liquidity Ratio (SLR) that banks must maintain.
c) Every bank shall maintain a liquid reserve in cash, gold or unencumbered approved
securities not exceeding 50% of the total of its demand and time liabilities in India.
d) None of the above
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 90
The tenure of members of the Local Boards of RBI is _______________.
a) 2 years
b) 3 years
c) 4 years
d) 5 years

Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 91
CCIL plays the role of a central counterparty, whereby, the contract between buyer and
seller gets replaced by two new contracts - between CCIL and each of the two parties.
This process is known as _________________.
a) Division
b) Novation
c) Dilution
d) Protection

Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 92
Urban Cooperative Banks (UCBs) are included in the second schedule of the RBI Act,
1934, if their net demand and time liabilities (NDTL) are at least ____________.
a) Rs 50 crores
b) Rs 100 crores
c) Rs 150 crores
d) Rs 200 crores

Answer: Option D
IE&IFS – Marathon – JAIIB 2025
Q. 93
A private bank in India is required to open at least __________of its branches in
unbanked rural areas.
a) 10%.
b) 25%
c) 35%
d) 40%
Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 94
Which among the following statement(s) is/are correct with respect to Foreign
Institutional Investments (FII)?
1. It goes into hedge funds, short-term equities, and securities.
2. It has short-term perspective.
3. The FII goes into production activities.
A. (Select the most appropriate answer from the options given below)
A. 1 and 2 only
B. 2 and 3 only Answer: Option A
C. 1 and 3 only
D. 1, 2 and 3
IE&IFS – Marathon – JAIIB 2025
Q. 95
The eligibility criteria for Banks to be able to perform Para Banking activities includes
the level of net non-performing assets is not more than _____________.
a) 1%
b) 2%
c) 3%
d) 4%
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 96
An expense ratio of 1% per annum on a Mutual Fund means which among the
following?
a) Each year 10% of the fund's total assets will be used to cover expenses
b) Each year 1% of the fund's total assets will be returned as dividend
c) Each year 1% of the fund's total assets will be converted to Direct Equity
d) Each year 10% of the fund's total assets will be converted to Direct Equity
Answer: Option B
IE&IFS – Marathon – JAIIB 2025
Q. 97
No Credit Information Company in India should charge membership fee and annual
renewal fees exceeding _________ and _________respectively.
a) Rs 10,000, Rs. 5,000
b) Rs 8,000, Rs. 4,000
c) Rs 1,00,000, Rs. 50,000
d) Rs 10,000, Rs. 3,000

Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 98
The period of the monthly instalments in a Hire-Purchase agreement ranges between
_____________ and ______________.
a) 12 months, 24 months
b) 26 months, 40 months
c) 36 months, 48 months
d) 12 months, 36 months
Answer: Option C
IE&IFS – Marathon – JAIIB 2025
Q. 99
Consider the following to calculate the GDP of an Economy:
1. Consumption on Food = Rs. 100 crores
2. Purchase of machinery by firms = Rs. 100 crores
3. Salaries of Government Employees = Rs. 200 crores
4. Revenue from Exports = Rs. 100 crores
5. Imports for Consumption worth = Rs. 100 crores
How much is the GDP of the country? (Select the most appropriate option from the ones given below)
A. 400 crores
B. 500 crores
C. 600 crores
D. 300 crores
Answer: Option A
IE&IFS – Marathon – JAIIB 2025
Q. 100
The Leasing process in which the lessor firm itself purchases the asset and hands it over
to the lessee is ____________________.
a) Direct Leasing
b) Leveraged Leasing
c) Sale and Lease Back
d) None of the above

Answer: Option A
IE&IFS – Marathon – JAIIB 2025
HW Q.
Section 17 of RBI Act is related to which among the following? (Select the most
appropriate option from the ones given below)
A. Meetings of the Central Board
B. Removal of Office
C. Business Permitted to be Conducted by RBI
D. Validity of a Loan Not to be Questioned
IE&IFS – Marathon – JAIIB 2025
HW Q.
Section 17 of RBI Act is related to which among the following? (Select the most
appropriate option from the ones given below)
A. Meetings of the Central Board
B. Removal of Office
C. Business Permitted to be Conducted by RBI
D. Validity of a Loan Not to be Questioned
Answer: Option C